Blockchain for Financial Inclusion in Nepal
Nepal receives inward remittances worth USD 7 billion per annum, making it one of the major contributors to the country’s GDP. However, only a handful of financial products and services in the market best reflect the realities and aspirations of migrant workers and remittance recipients. With the objective to deliver data driven remittance-linked financial services, Laxmi Bank and New Street Tech, a blockchain enterprise based in India and Middle East, have announced their partnership with investment and technical support from the UN Capital Development Fund (UNCDF). This partnership is further supported by Al Fardan Exchange, a global money transfer operator based in the UAE to explore the role of technology in achieving the sustainable development goals.
On the supply-side, this partnership is exploring the use of MIFIX - a blockchain-enabled lending ecosystem hosted by New Street Tech to facilitate information exchange between stakeholders in the Nepal-UAE corridor. This ecosystem, which recently closed on a USD 2 million seed funding from Unitus Ventures, aims to address common information asymmetry problems, streamline financial processes and create valuable data-driven insights.
On the demand-side, Laxmi Bank, with UNCDF’s technical assistance, will design and deliver customer-centric financial products and services that best reflect the realities and aspirations of migrant workers and remittance recipients. Nuanced financial literacy efforts that specifically address customer perceptions of the formal sector, product relevance and product usage will also form a substantive part of this initiative.
Read more in the announcement.